8 The Effectiveness of Government Spending on Education and Health Care in Developing and Transition Economies
Author:
Sanjeev Gupta
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Language:
English
Print Publication Date:
17 Sep 2004
Keywords:
BOOK; country; user payment; per capita income; francophone country; recipient country; exchange rate; hazard function; Health care spending; Africa; Western Hemisphere; Sub-Saharan Africa; Global; Asia and Pacific; health status; primary education; spending variable; health regression; expenditure responsibility; Education spending

Abstract

Policy makers are interested in the composition of public spending.1 This attention stems in part from the belief that government spending on education and health care can increase economic growth, promote income equality, and reduce poverty (Barro, 1991; Chu et al., 1995; and Tanzi and Chu, 1998). International financial institutions, donors, and NGOs therefore call for increased government spending on education and health care.2 In addition, an increasing number of studies have documented the adverse economic consequences of corruption; in particular, studies have shown that corruption is associated with higher military spending (Gupta et al., 2001) and lower government spending on education and health care (Mauro, 1998). These studies provide evidence that policies aimed at reducing corruption lead to increased spending on more productive outlays, such as education and health spending.

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Cover Helping Countries Develop
Helping Countries Develop
The Role of Fiscal Policy
ISBN:
9781589063181
Publication Date:
17 Sep 2004
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589063181.071
Pages:
540
Front Matter
1 Fiscal Policy for Economic Development: An Overview
I Macroeconomic Policy in Developing Countries
II Public Spending and the Millennium Development Goals
III Revenues and Growth
IV. Fiscal Policy and Aid
V. Special Topics

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